Bankrupt oil and gas producer Edge Petroleum Corp said Mariner Energy Inc had emerged as the successful bidder for all its assets with an offer of $260 million at a court-supervised auction.
In a statement, the company said the bankruptcy court entered an order on Monday, confirming its reorganisation plan and the sale transaction. The deal is expected to close on Dec. 31.
Mariner's bid includes a fixed gas price downward adjustment of about $23.9 million.
Edge Petroleum filed for Chapter 11 protection in October, saying it agreed to sell its assets to PGP Gas Supply Pool No. 3 and set a base price of $191 million.
However, PGP's highest bid at the auction was $243 million, Houston-based Edge Petroleum said.
PGP is entitled to a break up fee of $6 million. (Reporting by Santosh Nadgir in Bangalore; Editing by Anil D'Silva)